Japan Data Center Update 43: Leveraging Existing Energy Infrastructure for Data Center Growth

Tokyo Gas subsidiary and partners to develop data center at former Kushiro paper mill

Tokyo Gas Engineering Solutions (TGES), a Tokyo Gas subsidiary, and its partners announced plans to launch a data center project at the former site of Nippon Paper Industries’ Kushiro mill in Hokkaido. Using electricity from operational thermal generation facilities initially co-located with the ceased paper mill, the project will begin operations with 6 MW of capacity within FY2026 and expand to 40 MW in September 2027.

Three companies will partner on the project. Getworks will install its containerized data center facilities, TGES will coordinate the overall project, and Nippon Paper will provide the land and electricity. TGES and its partners believe the facility could eventually expand to 150 MW. The Kushiro mill, which occupies an 800,000-square-meter site, ended paper production in 2021, and Nippon Paper has been searching for ways to leverage the unused land.

Image of a containerized data center (Original Source: Tokyo Gas).

Kansai Transmission and Distribution expands substation capacity to meet AI data center demand

Kansai Transmission and Distribution is expanding transformer capacity at its Shin-Ikoma Substation in Ikoma, Nara Prefecture, to meet growing electricity demand. Numerous AI data center projects are planned in the Keihanna Area, which spans Kyoto, Osaka, and Nara prefectures. The company has installed equipment that steps down voltage from 275 kV to 77 kV. It will now carry out associated wiring and other work, with completion scheduled by June 2027.

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